The present invention relates to a money storage device, system and method of operating a bank account and bank account.
In today""s increasingly competitive banking environment simply providing high-quality banking services no longer guarantees customer loyalty. Customers will move their bank accounts to other providers in order to obtain improved service and/or various value-added features. However, evidence has also shown that when customers can be secured at a young age, there is at least a chance they will remain with a particular bank in future. Most major banks are currently trying to increase their profile, and number of account holders, amongst children.
While it is possible for a banking institution to provide accounts for children, there are a number of problems, particularly with very young children. Cognitive development tests have shown that children do not understand bank accounts until they obtain an understanding of quantities at about 8 years of age. Also, young children cannot generally be trusted with the means to access the bank""s self-service network (i.e. a cash-withdrawal card) and so transactions have to occur within the branch. Not only is this very expensive (and often the transactions involve very small amounts) for the bank to provide but it will also increase congestion in the branches where older, more valuable customers may be frustrated by the delay caused by lengthy children""s transactions. In addition, and perhaps most significantly, children do not wish to actually part with their money, even to a bank. As a child is unable to comprehend the concept of a bank account, he or she perceives that their money is being taken from them by the bank and will not be returned. Very young children may also find the bank branch boring, which will have a negative effect.
It is an object of the present invention to ameliorate the above disadvantages.
According to a first aspect of the present invention, there is provided an educational banking apparatus comprising a compartment for storing money, input means to allow money to be deposited into apparatus and output means to allow money to be removed from the apparatus, characterized by balance determination means for determining the amount of money stored in the apparatus and communications means to allow transfer of balance information to a remote location.
Although an account is held at a bank, the customer retains their money at their home within the apparatus, so there is no pressure on bank branch facilities. Neither does the young customer have to actually part with their money. By provision of a communications link between the apparatus and the remote bank at which the account is held, up-to-date account balance information can be held by the bank and the customer can receive, and become familiar with, xe2x80x9cadultxe2x80x9d banking paraphernalia such as statements received by post. Typically, the savings apparatus will be linked to the bank""s computer on a regular basis, such as weekly, so that the mailed statements are up to date but connection may take place as and when a statement is desired. Alternatively, communication may take place in response to deposits to or withdrawals from the apparatus.
The communication link with the bank""s computer may be via a number of different channels, but access via the Internet is preferred. In certain countries, it is now possible to obtain a connection to the Internet via the electricity supply. In this case, therefore, a single connection to a mains socket will provide power for the savings apparatus and the data-link with the bank""s computer.
The balance determination means is preferably in the form of a weight sensor but more sophisticated techniques such as coin sensors may additionally or alternatively be used.
The savings apparatus is preferably in a form which appeals to children such as in the form of the traditional piggy-bank. Another preferred arrangement is that of a plurality of cylindrical tubes sized to each denomination of the relevant currency. By making the tubes transparent the customer can see exactly how much of each denomination of coin he/she has.
Further functionality may be provided in the storage device such as an alarm clock, a bedside lamp, sound effects, visual display effects and even an audio synthesizer which may, for example, be arranged to deliver appropriate messages to the young customer such as the playing of Happy Birthday to the customer on the relevant day. These additional features are designed to appeal to the younger customer and so promote the apparatus and its primary function, i.e., saving money to a child.
From another aspect, the invention may be defined as a system for operating a bank account comprising a banking institution, a savings storage device for storing money at a customer""s location remote from the banking institution and communication means for communicating account information between the storage device and the remote banking institution.
In this system, the functionality available to the customer can be divided between the bank""s computer and the savings storage apparatus itself. For example, the savings storage apparatus could be substantially xe2x80x9cdumbxe2x80x9d, the signals generating capability of the apparatus (i.e. playing a happy tune when money is inserted) being made via the link to the bank""s computer. A message would be sent from the device in response to each withdrawal or deposit. At the other extreme, the storage device could be provided with almost all of the required intelligence and be programmed only to send a new balance to the bank""s computer periodically. Any mixture of functions between these two extremes is possible.
Accordingly from a third aspect of the present invention, there is provided a method of operating a bank account comprising providing the customer with a savings storage device to be kept at customer location remote from the account holding banking institution, communicating account balance information from the customer location to the banking institution over a communications network customer and sending the customer statements of account.
The account balance is preferably communicated to the banking institution at predetermined intervals but may also be communicated automatically in response to deposits to and withdrawals from the savings device.
The account is preferably opened for a child by a parent or guardian in the normal way.
Over time, if the account has been operated in a mature manner or other criteria have been met such as the balance reaching a certain value, the banking institution may wish to provide the customer with one or more further savings storage devices (a more sophisticated device or a family of devices) or other incentives so as to reward the customer. This motivates the child to operate the account in a mature manner and encourages saving of money.
Expressed in another way, the invention resides in bank account in which funds are stored at the customer""s location. As discussed above, such a system has advantages for both the banking institution (i.e. no drain on branch facilities) and for the young customer (i.e. he or she can retain their money at home but still hold a bank account)
It should be understood that by customer location is meant at a location chosen by the customer rather than physically with the customer at all times.
In due course, provided that the account has been operated responsibly, the account may mature into a more traditional one in which the funds are actually stored by the bank. A number of increasingly sophisticated accounts may thus be provided as the child grows older. This ensures that he does not get bored with the bank and is more likely to remain faithful to it in the longer term.